You Are Trying to Attract New Customers That You Feel

question 79

Multiple Choice

You are trying to attract new customers that you feel could become repeat customers.The average selling price of your products is $69 each with a $41 per unit variable cost.The monthly interest rate is 1.5 percent.Your experience tells you that 8 percent of these customers will never pay their bill.What is the value of a new customer who does not default on his or her bill?

• A)$1,733
• B)$1,867
• C)$2,617
• D)$4,817
• E)$8,867

---

Definitions:

FMVSS 121

Legislation that defines minimum standards for all highway operated air brake equipment.

System Pressure

Usually refers to the range of pneumatic circuit pressures between cut-out and cut-in pressure values in an FMVSS 121–compliant air brake system. Can refer to other fluid power circuit pressures such as those in transmission hydraulics and engine lube circuits.

Tractor/Trailer Combination

A configuration consisting of a tractor unit that provides the motive power and a trailer unit that carries the cargo, commonly used for freight transport.